Palm oil may test support at 4,499 ringgit

SINGAPORE, Oct 5 (Reuters) - Palm oil may test a support at 4,499 ringgit per metric ton, a break below could open the way towards 4,445 ringgit.

The downtrend looks intact within a falling channel, which suggests a target of 4,445 ringgit. A reversal of the trend will only considered if the market could climb above the channel.

To be precise, a break above 4,567 ringgit may signal a trend reversal. The break could open the way toward the 4,588-4,622 ringgit range.

On the daily chart, signals are mixed, as the market briefly pierced below a support at 4,529 ringgit. However, a hammer formed during the previous trading session, which might turn out to be a reversal pattern.

The closing price on Monday will be key to evaluating the market's next move. A close above 4,529 ringgit may confirm the bullish pattern, while a close below this level could be considered a sign that the downtrend is resuming.

** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own. His analyses are published exclusively on Workspace - platform provided by London Stock Exchange.

** No information in this analysis should be considered business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses. ​